DURBAN - The 2018 Melbourne Mercer Global Pension Index shows that South Africa's rating has improved compared to 2017.
Last year, South Africa's rating was 48,9 and in 2018 it stands at 52,7.
South Africa's rating is within the range comparable to both developing and developed countries.
Chief Executive of Mercer South Africa Nicolette Hendricks said that the purpose of the index is to provide a reference point against which countries can measure their retirement systems.
She said "Every country has its own unique economic, social and political circumstances. Nevertheless, every country can take action and move towards a better system. In the long-term, there is no perfect pension system, but the principles of ‘best practice’ are clear".
The pension index can provide insight to planners and policymakers on the way forward.
For example, the MMGPI researchers suggest that South Africa can increase their score by introducing a minimum level of compulsory contributions in to a retirement savings fund.
Below is a table that shows South Africa's overall index value along with South Africa's index value for three sub-indices: adequacy, sustainability, and integrity. The index values below represents a score between 0 and 100.
Follow the Business Report on Instagram here
BUSINESS REPORT ONLINE